Advertisement

HindustanTimes Sat,12 Jul 2014

Surprise show: industry grows 8.2% in October

HT Correspondent, Hindustan Times  New Delhi, December 12, 2012
First Published: 11:19 IST(12/12/2012) | Last Updated: 00:46 IST(13/12/2012)

India’s factory output surged to a 16-month high of 8.2% year-on-year in October, beating the projection of a sub-5% growth rate as both consumer goods and machinery output surged. In October last year, the index of industrial production contracted by 5%.

Advertisement

While expectations of an economic rebound grew, retail inflation rose again close to double-digit levels, delaying hopes of an interest rate cut that could fan the sails of growth.

Experts linked the growth to robust demand for consumer durables in the festive season and a base effect stemming from a lacklustre show previous year. But they are still cautious on the rebound.

Finance minister P Chidambaram, however, saw “green shoots” of a rebound in the economy. “Investments are taking place, capacity is being created and consumption is happening in consumer durables and non-durables.”

In other data released Wednesday, retail price inflation inched up to 9.9% in November from 9.75% previous year, hitting hopes of an interest rate cut at the RBI policy review on December 18.


Advertisement
more from Business

Doubling of tax on debt mutual funds to hit retirees

On Thursday, finance minister Arun Jaitley gave investors and the mutual fund industry a jolt by increasing the long-term capital gains tax on debt mutual funds to 20% from 10%. The definition of long-term has also been changed to 36 months for non-equity MFs from 12 months.
markets
Advertisement
Most Popular
Advertisement
Advertisement
Copyright © 2014 HT Media Limited. All Rights Reserved